KATHMANDU, Jan 1: Nepal is facing a trade deficit with more than 100 countries, with the country recording an annual trade gap exceeding Rs 1.5 trillion. In the first five months of the current fiscal year (FY) 2025/26, Nepal traded with around 150 countries but registered trade deficits with 115 of them, while recording surpluses with only 33 countries.
According to data released by the Department of Customs, Nepal’s total foreign trade deficit from mid-July to mid-December stood at Rs 649.68 billion. During this period, imports amounted to Rs 766.18 billion, while exports were limited to Rs 116.50 billion.
India remains Nepal’s largest trading partner, followed by China. Trade volumes with both countries run into hundreds of billions of rupees, while trade with other nations ranges from thousands to billions, according to customs statistics.
Trade with neighbouring and SAARC countries
During the five-month period, Nepal recorded a trade deficit of Rs 339.22 billion with India. Imports from India stood at Rs 434.64 billion, while exports amounted to Rs 95.42 billion.
Nepal also faced a trade deficit of Rs 163.26 billion with China. Imports from China totalled Rs 163.73 billion, whereas exports were limited to just Rs 46.68 million.
Among other SAARC nations, Nepal recorded trade deficits with Bangladesh, Sri Lanka, Pakistan, Afghanistan and Bhutan, while Maldives was the only country with which Nepal maintained a trade surplus.
Nepal faces trade deficit with 133 countries
Nepal imported goods worth Rs 373.23 million from Afghanistan and exported Rs 215.13 million worth of goods. Imports from Bhutan amounted to Rs 435.3 million, while exports reached Rs 321.04 million.
In contrast, Nepal imported goods worth only Rs 73,000 from Maldives while exporting goods worth Rs 3.855 million, resulting in a trade surplus.
Similarly, imports from Bangladesh stood at Rs 2.78 billion, while exports were limited to Rs 211.73 million. Imports from Pakistan totalled Rs 108.88 million, while exports reached Rs 85.79 million. From Sri Lanka, Nepal imported goods worth Rs 118.8 million and exported goods worth Rs 18.57 million.
Trade with other Asian countries
Among Asian nations, Nepal imported goods worth Rs 3.69 billion from Japan during the five-month period, while exports to the country stood at Rs 945.9 million.
Imports from South Africa totalled Rs 493.3 million, with exports at Rs 26.5 million. Imports from Malaysia stood at Rs 4.75 billion, while exports were valued at Rs 900 million. From Singapore, Nepal imported goods worth Rs 2.31 billion and exported goods worth Rs 532.3 million.
In the Gulf region, imports from the UAE exceeded Rs 23.45 billion, while exports stood at Rs 845.5 million. Imports from Oman amounted to Rs 241.8 million, with exports of Rs 47.5 million. Imports from Israel stood at Rs 1.72 billion, while exports reached Rs 249 million. Iran accounted for imports worth Rs 6.61 million, while exports were limited to Rs 544,000.
Trade with the US and Europe
From the United States, Nepal imported goods worth over Rs 10.35 billion during the five-month period, while exports totalled Rs 7.42 billion.
Nepal also recorded a trade deficit with the United Kingdom, importing goods worth over Rs 1.71 billion and exporting goods worth Rs 1.44 billion.
In South America, imports from Argentina stood at Rs 4.45 billion, while exports were limited to Rs 889,000. Imports from Brazil totalled Rs 4.98 billion, while exports amounted to Rs 270 million. From Canada, Nepal imported goods worth Rs 3.65 billion and exported Rs 607.6 million worth of products.
Among European countries, imports from France stood at Rs 3.31 billion, with exports of Rs 963 million. Imports from Germany exceeded Rs 2.18 billion, while exports stood close at Rs 2.12 billion. Imports from Italy totalled Rs 1.86 billion, while exports amounted to Rs 660 million.
Nepal also recorded trade deficits with war-affected Ukraine and Russia. Imports from Ukraine stood at Rs 2.62 billion, while exports were limited to Rs 1.54 million. Imports from Russia exceeded Rs 2 billion, while exports amounted to Rs 74.2 million.
Trade deficit with smaller nations
Customs data show that Nepal faces trade deficits even with several smaller and economically weaker countries. For instance, Nepal imported goods worth over Rs 20 million from conflict-hit Sudan, while exports were zero. Trade deficits were also recorded with countries such as Yemen, Tunisia, Zimbabwe, Uganda and Kenya.
Countries where Nepal recorded trade surpluses
Nepal recorded trade surpluses with countries including American Samoa, the Bahamas, Barbados, the Cayman Islands, Colombia, Congo, Croatia, Denmark, Fiji, Georgia, Ghana, Iceland, Laos, Jamaica, Kyrgyzstan, Lebanon, Maldives, Mali, Malta, Niger, Norway, Panama, Papua New Guinea, Romania, Seychelles, Slovenia, Somalia, Sweden, Syria, Uruguay and Iraq.
